January 6, 2018

Where $375 billion of Arms are ‘Tested’ every year?

By: Azhar Azam

There are various estimates to determine the enormous number of human fatalities in several armed conflicts around the world but neither of these could express the number of families suffered, the number of kids victimized and orphaned and the number of widows befallen besides massive destruction of infrastructure, people displacement and indirect deaths resulted from these wars and conflicts.

Nevertheless, we can at least calculate the huge volumes of military expenditures and arms sale which are incurred to protect the national security, to oppress people, or even to resist against repression. But what has truly given an exceptional surge to these military and arms expenditure is the ‘arguably triggered’ – menace of terrorism.

Setting aside the ‘objectives’ behind sparking the plague of terrorism, arms business – patronized by the ‘imposed’ large military expenditures worldwide – remains the perpetually productive, profitable and flourishing industries of the world today billed by the war on terror in Iraq, Afghanistan and Pakistan and numerous conflicts going on in the Middle East, South Asia, and Africa to topple or reinstate the governments.

Whether it is US-led coalition attack on Iraq or Afghanistan, Syrian civilian carnage, Egypt turmoil, Turkish-Kurdish conflict, Saudi-led assault on Yemen, Libyan catastrophe, Israeli ambush on Philistine, Indian atrocities in Kashmir or Pakistan’s military operations to nip terrorism – irrespective of who win and who losses – the arms manufacturers are always the winners as far as such fracas continue to flare.

According to SIPRI, the worldwide military expenditure had reached to whooping $1.7 trillion ($1,696 billion) in 2016 – now warranting an arms sale of $375 billion (top-100 companies excluding China) for the same year, 1.9% or about $7 billion increase from prior year 2015.

Countries with Largest Military Spending – 2016
In 2016, total US military expenditure of over $611 billion was more than one-third (36.2%) of global world military expenditure and as much as three-times of second-largest military spender, China. The total military spending of these two countries accounted for nearly half of total world spending in 2016.

Total military expenditure by top-5 countries – United States, China, Russia, Saudi Arabia, and India combined spending in 2016 was 60.2% or more than $1 trillion of world military expenditure in 2016.

Per capita military spending of Israel ($2,194) and Saudi Arabia ($1,978) were highest in the world for 2016. The leading United States was ranked fourth in the category with a per capita military spending of $1,886 for the year.

Countries with Largest Arms Sale – 2016
In 2016, 38 US-based companies out of SIPRI top-100 arms manufacturing companies from around the world (excluding China) had an arms sale of $217.2 billion – pocketing a blanket market share of 57.9%. Top-5 countries again dominated the arms sale in 2016 – accounting for 83.8 or about $314 billion.

The sale of US and Russian companies grew by 4.0% and 3.8% respectively however the sale of West European arms producing companies remain comparatively flat in a global market growth of 1.9%.

South Korean companies had an impressive 2016 as the companies from the country bolstered a remarkable 20.6% growth to post arms sale of $8.4 billion in 2016.

SIPRI database excludes China due to ‘the methodological difficulties posed by the lack of transparency about China’s arms sales’ however on limited data basis, China sales of arms are estimated about US$268 billion in 2012.

Leading Arms Exporting and Importing Countries – 2016
The total value of global arms transfer is estimated at $91.3 billion in 2015, according to SIPRI. Arms export market is dominated by the United States ($9.9 billion) and Russia (6.4 billion) as of 2016 whereas Saudi Arabia ($3.0 billion), Algeria (2.9 billion), and India ($2.6 billion) were the largest arms importers in 2016.

It is pertinent to note that global arms exports are only a fraction of arms sale worldwide. For example, although the US companies’ arms sale in 2016 was $217.2 billion but US exports were only $9.9 billion in 2016. This is because these arms producing companies sell most weapons to their government customers.

The values of arms agreements and notifications are much higher but when these agreements and notifications are translated into exports, the actual value trims down drastically.

Companies with Largest Arms Sale – 2016
Lockheed Martin is the world’s largest arms manufacturing company with total net sales of $47.2 billion (arms sale $40.8bn) in 2016. It operates under four segments: Aeronautics ($17.8bn); Missiles and Fire Control ($6.6bn); Rotary and Mission Systems ($13.5bn) and Space Systems ($9.4bn).

It manufactures world class combat and air mobility aircrafts and unmanned aerial vehicles (UAVs) including multi-role and stealth fighter jets such as F-35, F-16, and F-22, tactical airlifter C-130 Hercules, air and missile defense systems like PAC-3 and THAAD, and other surveillance and space systems.

In November 2015, Lockheed Martin purchased Sikorsky Aircraft Corporation of United Technologies for $9 billion – manufacturer of military and commercial helicopters such as Black Hawk, Seahawk, CH-53K, H-92, S-76, and S-92.

Out of SIPRI top-100, 63 companies are listed in the United States (38) and West Europe (25) which collectively had a market share of 82.4% or $308.8 billion. Of top-10 companies in the table, 7 are listed in the United States and 3 in West Europe.

A total of 10 Russian companies also occupy the top-100 list. SIPRI estimates to include at least 9 or 10 Chinese companies in its top-100 if arms sale data could be available from China.

Where $375 billion of Arms are ‘Tested’ every year?

The list hardly includes a country that is facing a strong terrorism threat or significant armed conflict on its territory but how profoundly the arms manufacturing companies of these countries have grown.

The total arms sale (excluding China) totaled $374.8 billion in 2016 whereas the global arms transfer value, according to various estimates, never exceeded $100 billion. So the other $175 billion of arms are used by these countries to strengthen their forces, fighting terrorism, fall in the hands of the terrorists and to ‘test’ their weapons in Afghanistan, Iraq, Libya, Syria, Palestine, Kashmir – unfortunately all Muslim territories – and other conflicted regions.

All of the largest arms producing countries are concocted be civilized, peace makers and law-abiding icons but only within their geographical boundaries. The theories of feeding conflicts, armoring rebels and fashioning chaos sound real on the basis of this terrible disparity between arms sale and arms transfer.